Preferred Apartment Communities, Inc. Announces Mezzanine Loan Investment Closing
ATLANTA, May 8, 2012 /PRNewswire/ -- Preferred Apartment Communities, Inc. ("PAC") (AMEX: APTS), a Maryland corporation, today announced that it closed on a mezzanine loan investment of approximately $6.1 million to Oxford Summit Apartments II LLC ("Summit II"), a Georgia limited liability company, in connection with Summit II's plans to construct a 140-unit apartment community in suburban Atlanta, Georgia located adjacent to Summit Crossing Apartments, a 345-unit multifamily community owned by PAC. In connection with the mezzanine loan, PAC was granted an option to purchase the 140-unit apartment community between the 29th and 32nd months following the closing of the mezzanine loan for a pre-negotiated purchase price of approximately $19.25 million.
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our property acquisition strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the construction of these properties. As a secondary strategy, we also may acquire senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest not more than 10% of our total assets in other real estate related investments, as determined by our manager as appropriate for us. Preferred Apartment Communities, Inc. intends to elect and qualify as a real estate investment trust for U.S. federal income tax purposes, commencing with our tax year ended December 31, 2011.
SOURCE Preferred Apartment Communities, Inc.